On New Florence, I have been cataloging impressive use of advanced analytics for a few years now. Nowadays, it is jarring when you see scenarios which do not leverage the deluge of data available at reasonable cost to most enterprises. First in a series of such posts.
I comparison shop for auto insurance every couple of years, typically via an agent. Recently I decided to do it via the Progressive Insurance website.
Miss 1: I came to a screen where it wanted dates of moving violations, accidents etc. I did not have that data. So I saved the on-line application and switched to a call. The agent asked the same questions. I told him surely Progressive has access to those records from various authorities, services like CarFax etc. I may have misheard the agent but he said “We do, but we would rather not pay for them. We prefer to collect this data from each customer.” For each driver in the family. Going back several years. Who has that data handy? More importantly, surely Progressive checks what consumers tell it, so why not rely on its own data and streamline the application process? As one of the largest auto insurers surely it can get the data for each application at pretty reasonable cost
Miss 2: The agent explains how Snapshot, Progressive’s telematics tool, can save us money if we allow it to track our driving patterns. Sounds fair, but the agent did not offer a trial before we switched. Even better, he could have been equipped with data like “32% of people in your city have qualified for 23% savings with Snapshot tracking”. The pitch was more on the lines of “let us collect your data, and we might, maybe give you a discount”.
Miss 3: Good use of Big Data could have prompted the agent to ask some customized questions. Do you use the Hyundai Blue Link mobile app? It can be used to track a stolen car, and even "kill" it. Would your kids agree to geo-fencing?
Miss 4: I told the agent his quote was not competitive. He did not bother to ask by how much. Progressive ads claim they help comparison shop. Wonder where they get their data about competitive pricing – you think it would be through detailed win-loss analysis from customers like me.
Having said that, my incumbent insurer, GEICO does not appear to be much better. When I asked them if I was being credited for Blue Link above, they gave me an evasive answer about specific auto features being recognized by their premium rating system via a car’s VIN number. How does a VIN code tell them about a mobile app? When I asked them why rates were not going down even though the kids are not teenagers anymore, they talked about accident forgiveness. It would be so much better if they provided specific benchmarks and explanations. In our age of Big Data, I think most consumers are ready for more transparency.
